Off Early Cheaps

Tsys are a little firmer after the release of various regional m’fing PMIs out of Asia, with cash Tsys twist flattening, running ~1bp cheaper to ~2bp richer across the curve, pivoting around 3s. 10-Year Tsy yields sit a shade below 3.00% at typing after operating below that threshold for most of the NY afternoon, before cheapening was observed into the NY close.

• TYU2 is -0-03 at 118-14, operating just below fresh session highs, aided by e-minis pulling back from best levels, registering fresh session lows in the process.
• Note that the space showed nothing in the way of meaningful reaction to the release of Chinese Caixin m’fing PMI data. The print came in comfortably ahead of expectations (after the official PMI reading moved back into expansionary territory when it hit yesterday), although the text of the print pointed to continued questions re: the footing that the Chinese economy is operating on at present.
• Elsewhere, major crude benchmarks are a little off best levels of the session with an early, light bid losing momentum, providing some support for the Tsy space (alongside the aforementioned downtick in e-minis).